Local convenience store chains follow national trends toward expansion, fresh food offerings

Convenience stores account for a third of all U.S. retail outlets, and chains that operate in Amarillo and the Texas Panhandle continue adding to that total with projects in the pipeline.

Lubbock-based United Supermarkets is set to begin serving customers today at its new United Express store on South Soncy Road, spokesman Eddie Owens said.

Meanwhile, Cefco spokesman Joe Paclebar anticipates a Feb. 7 opening for its rebuilt store at Interstate 40 and Bell Street.

Leaders for Toot'n Totum and Pak-A-Sak - the area's larger chains - are scouting sites and putting projects into development.

The U.S. convenience store count increased to 151,282 stores as of Dec. 31, an increase of 1.4 percent - or 2,062 stores - year over year, according to a report released this week by the National Association of Convenience Stores and Nielsen.

The convenience store total is 34.3 percent of all retail outlets nationwide, according to the report, and Texas leads in store count with 15,191 - an increase from 14,920 stores the previous year.

"Today's time-starved consumers need quick and convenient access to food, fuel and beverages," NACS Chairman Brad McCall said with the report's release.

The United Express line has its beginnings in fuel kiosks the grocery chain planted at supermarket locations beginning in 1997, said Tandy Arrant, United business manager for convenience.

"It was just a little kiosk - one person who manned a kiosk out there to sell gas, tobacco products and a few little candy bars," Arrant said.

United realized it could expand the product offerings without greatly expanding the labor costs, Arrant said, so larger United Express stores were developed.

United Express, Pak-A-Sak and Toot'n Totum now incorporate drive-thru service into their store models.

"It's a growing trend," Toot'n Totum President and CEO Greg Mitchell said. "It's a very expensive trend, because you have to add extra labor and extra equipment, but it's something that we will probably continue to do."

Pak-A-Sak President Terry McKee estimated the chain's Pak-A-Sak Express stores do 60 to 65 percent of their business through their drive-thru windows.

McKee said larger Pak-A-Sak stores see probably 30 percent of their sales from drive-thru customers, one reason the chain recently added a lane and window at its Soncy site. Other stores have also been remodeled to include windows in recent years.

"We believe there's a demand for drive-thrus," McKee said.

The new United Express will emphasize food options freshly prepared by the adjacent supermarkets, another industry trend noted in a 2013 report published by Information Resources Inc.

Fluctuating gas prices and decreased tobacco use have slowed those strong selling categories for convenience stores, according to the report.

However, the report states market research firm Mintel forecasted 28 percent growth by 2017 for a U.S. convenience store food market worth about $25.5 billion in 2012.

"Consumers are looking for ways to fuel up without slowing down," the report said.

United Express will sell fresh-made sandwiches, salads, parfaits, breakfast burritos and other grab-and-go items, Arrant said. The company expanded its hot-case areas to hold more hot food options, too.

Cefco, a Temple-based company, also will have increased food choices, Paclebar said.

Mitchell said Toot'n Totum has hired a new manager to increase its offerings of food "ready to eat, and fast, in as many stores as we can."

The chain is looking to expand its yogurts, fresh fruits, cheeses and other healthier fare, and it has added to its selection of baked goods, Mitchell said.

Toot'n Totum anticipates launching construction of an 8,000-square-foot store in Perryton - 3,000 square feet larger than its newest Amarillo stores - to serve both passenger-car drivers and truck drivers, Mitchell said,

The store will contain larger restrooms, showers and a larger food operation, he said. Diesel fuel will be available.

Mitchell said the chain also has a store on the drawing board for Pampa "along the lines of what we put in at (Southwest) 34th (Avenue) and Osage (Street)."

Toot'n Totum announced plans last year for its largest-ever location, a truck center at Interstate 40 and Lakeside Drive. A shuttered hotel on the site is to be demolished to make way for the project.

Mitchell estimated the demolition, when it begins, will take a couple of months.

The company also is in the midst of rebranding 10 Express Lane stores it acquired last year from Frontier Fuel Co., Mitchell said.

The stores operate in five cities across the Texas Panhandle.

Pak-A-Sak's McKee remained mum about upcoming projects.

"We're constantly looking for new sites throughout the Panhandle," he said.

"We've got our eye on a few."

Source: Convenience Store News

Source: National Association

of Convenience Stores, Nielsen